Net zero by 2050 -- "An utterly impossible and ridiculous goal"...

Net zero by 2050 -- "An utterly impossible and ridiculous goal" says Jordan Peterson. Australia's 40+% net zero by 2030 target is "Impossible, preposterous and ludicrous"

"Green carpet baggers; who will make you pay for it" -- says Andrew Bolt.


Climate change zealot, minister Chris Bowen says "Labor's climate legislation is "simply the beginning" and the work to slash Australia's emissions starts now" -- Canberra Times 27th July 2022. Scary stuff indeed.

$20 trillion dollars by 2050. It feels like a massive over-estimation to me, but surely the number will be huge. Into the hundreds of billions. More than enough to go around.

If you watch the video purely with the mindset of an investor and switch off any political or idealogical bias, 'outrage' is replaced with 'opportunity'. Climate change is all we hear about these days. My personal feelings on its merits are irrelevant here. The momentum towards these goals is so strong that at this point there's absolutely no turning back.

https://youtu.be/DYOImCwLBMM

How the heck can we achieve this goal? Each party is trying to outdo the other with more and more outrageous goals. Imagine the stop-at-nothing spending efforts required.

Bioenergy is about 10% of electricity generation in the UK. In Australia it's practically zero.

Hamish stated in an interview with * last year that biogas is not drip-feed on/off energy like wind or solar. It's constant. And can be relied upon as baseload power. (https://unauthorised investment advice/resources/rock-yarns-renewable-energy-company-delorean-is-ready-to-fly-in-the-wake-of-cop-26/). This is the only interview where I've heard Hamish or Joe explain the biogas digestive process. It's very interesting.

In the UK:


Electricity generation from bioenergy has gone from almost nothing (Australia's situation now) to 11% in 30 years.



https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1032260/UK_Energy_in_Brief_2021.pdf

The figures just from 2010 to 2020 alone are compelling. And that figure is still rising.

Delorean is one of the very few companies in the bioenergy space. It's certainly the only one which is ASX listed. It's front and centre.

I don't have much idea about financial analysis. I can research topics and write about my findings, and l know the difference between good and bad numbers. But doing discounted cash flows and predicting future earnings and the like is beyond me. The more I look at Delorean and the energy sector the more I like.

I wrote in a previous post that companies like Delorean are almost *too important to fail* (to borrow from a well-known phrase). I just wonder how on earth do we even get close to these radical targets *and* keep the lights on...if nuclear isn't an option here (it IS an option in the UK), and coal fired plants are being shut down rapidly, and relatively-clean new gas-fired plants are forbidden. And, demand for energy grows constantly each year with a constantly growing population due to immigration. Answer: we dont. It can't be done. That is, unless, radical solutions like biogas plants are installed. AGL is retiring coal plants early as the operating environment is becoming increasingly hostile. The political pressure to find solutions which create energy but also reduces emissions is immense. Remember, bioenergy is a stable, hundreds of years old technology, not pie-in-the-sky hydrogen projects.

Emptytrolly and Dabozza both state that Delorean is at least fair value / undervalued at 11¢. These guys understand finance, not just macro themes. I didn't plan another long post this afternoon. My feeling is you're early in your big DEL investment, but you're not wrong. Although I'm not sure what compelled you to go so hard at this! $50k? Wow!!

So, while the very important theme of absent financing is understandably putting pressure on the share price, I think the too-important-to-fail will prevail and where there's a will, there's a way. It's not a very compelling financial arguing, but in my opinion it's more than enough for me to hang my hat on.

As SourLemon says, there's a lot of risk, guesswork and unknowns. This is a classic speculative buy to me!